Binance is faced with charges of money laundering again. The Nigerian government accuses the crypto exchange of causing the collapse of the national currency. The crypto market is narrowing in the most populous country in Africa.
The conflict between Nigeria and Binance continues
In the last 12 months, the Nigerian government has directed accusations to Binance, such as weakening the local currency, allowing criminals to launder money, and unlicensed activities in the country. Now, days before the case that will begin next week, the authorities brought up a new claim.
Last Friday, the Nigerian Ministry of Communication claimed that Binance offered a $ 5 million payment to the authorities to release the senior executive Tigran Gambaryan, who was detained last year.
“The government rejected Binance’s 5 million dollars in advance payment of 5 million dollars in exchange for the freedom of Mr. Gambaryan.” he said.
New charges
Idris said that the government reached a more advantageous agreement with Washington before releasing Gambaryan, a US citizen and worsening health status.
Binance was not officially accused of these allegations. However, the last accusation of the government reunited the stock market’s tendency to operate without a regulatory framework.
Next week, prosecutors will provide documents in court that proves how Binance’s illegal actors allow 35 million dollars to laundered over the platform.
Prosecutors also accused Binance of making foreign currency manipulation and unlicensed activities in the country.
Nobody in court will be
Binance officials will not physically participate in the case. Nadeem Anjarwalla, the company’s regional manager in Nairobi and a lawyer at the same time, will be tried in absentia.
Anjarwalla was detained in February last year with Gambaryan, but a few weeks later he survived security guards and managed to escape from the country.
Currency Crisis and Binance
If the court finds Binance guilty, the stock market may be fined as much as the entire amount specified in the indictment under Nigerian laws. Anjarwalla may also be sentenced to imprisonment.
Binance rejected the charges and argued that he and Anjarwalla were innocent. The company refused to comment on the subject. Last year, Binance announced that the Nigerian government was unjustly responsible for the depreciation of the national currency of the national currency.
The company argued that Nigeria’s largest foreign exchange crisis is not due to the transactions on Binance’s spouses (P2P) platform, but from economic conditions. However, Binance stopped P2P transactions in the country due to increasing tension with the Nigerian government.
Binance CEO Richard Teng, said in a statement last year, “the country’s currency crisis we play a role in the crisis of the allegations and as an indicator of goodwill, I decided to close our P2P product for Nigeria at the beginning of this month.” he said.
Ongoing legal problems
This case shows that Binance continues to struggle with serious legal problems. Last year, the company admitted that it violated the US banking laws and paid a penalty of $ 4.3 billion on the grounds that it provided convenience to criminals.
Last month, the French prosecutors launched an investigation investigating whether Binance was involved in money laundering activities associated with tax evasion and drug smuggling. Binance officials announced that they would fight if any accusation against the investigation in France is directed.
On the other hand, officials in Nigeria are trying to alleviate the pressure on the crypto sector. In addition to Binance, many foreign stock markets such as Okx and Kucoin were withdrawn from the countries.
The government also tried some people and businesses on the grounds that they were trading illegal crypto and froze their bank accounts. In 2024, the use of stablecoin in Nigeria decreased by 38 %to $ 23.6 billion.
The Nigerian Securities and the Stock Exchange Commission licensed two stock exchanges within the scope of new regulations: Quidax and Busha. At the beginning of this month, these platforms launched CNGN, the first stabilcoin approved in the country. CNGN is indexed to Nairaya, the third worst -performing currency in Africa.
